Journal Article

New Community Reinvestment Act regulation : what have been the effects?

Abstract: Effective January 1, 1996, the federal financial supervisory agencies (agencies) implemented their new Community Reinvestment Act (CRA) regulations. The new regulations currently apply to small institutions; they will apply to large institutions in 1997. ; In adopting their new regulations, the agencies sought to address complaints voiced by banks and the public about burden, relevancy, and consistency of CRA regulation under the agencies' old supervisory approach. To judge the new regulation's success in addressing these complaints, we surveyed 38 small Tenth District member banks examined during the first half of 1996. We found that for the most part the agencies accomplished what they set out to do. However, final judgement on the agencies' ultimate success in addressing earlier complaints with CRA regulation must wait until experience is gained with large banks in 1997.

Keywords: Community Reinvestment Act of 1977;

Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Financial Industry Perspectives

Publication Date: 1996

Issue: Dec

Pages: 1-11